Home Daily Commentaries The Loonie trades strongly after better than expected GDP numbers

The Loonie trades strongly after better than expected GDP numbers

Daily Currency Update

Regarding the U.S.-China trade spat, China's Minister of Commerce Gao said China wouldn't retaliate against Trump's latest tariffs and confirmed that China and the U.S. are in contact. Trump followed by saying a talk was scheduled for today and that it would be at "a different level," insinuating a better dialogue would take place.

Key Movers

In Europe, the Head of the Dutch Central Banker, Klaas Knot, lowered market expectations for a significant stimulus package at the next ECB meeting. He said the European economy, “doesn't yet warrant the resumption of quantitative easing.” He added that Q.E. should not resume unless the current slowdown worsens. The EUR/USD pair spiked on his comments. However, the incoming ECB President Christine Lagarde signaled that she would “follow Mario Draghi in keeping monetary policy ultra-loose.”

In New Zealand, the NZD/USD pair fell towards 0.6289, despite data showing that New Zealand consumer confidence rose in August. Furthermore, July building permits came in at 1.3 percent month to month, which was better than the previous -4 percent. At the time of this writing, the NZD/USD is trading at 0.6311, and it looks ready to continue bouncing during the North American session. Finally, Australia is on track to run its first current-account surplus since 1975. However, the cash rate is at a record low of 1 percent and forecast to drop to 0.5 percent next year..

Expected Ranges

  • USD/CAD: 1.3250 - 1.3315 ▼
  • EUR/CAD: 1.4610 - 1.4657 ▼
  • GBP/CAD: 1.6110 - 1.6232 ▼
  • AUD/CAD: 0.8923 - 0.8962 ▼
  • NZD/CAD: 0.8348 - 0.8411 ▼